A key senator has sounded the death knell for the cashless debit card by supporting the government’s push to scrap it.
The cashless debit card quarantines up to 80 percent of a welfare recipient’s income which cannot be withdrawn in cash or spent on gambling or alcohol.
Independent senator David Pocock says he has listened to the stories and evidence from communities affected by the card.
He then came to the conclusion compulsory income management in any form had to be scrapped.
But voluntary income management still needs to be made available for those who want it, he said.
Senator Pocock called the bill a “first step” and acknowledged it did not scrap all compulsory measures.
“We need to push the government to end all forms of compulsory income management,” he said.
“This bill is far from perfect but is clearly ... needed, and any significant delay in its passage will subject people to further distress.”
Labor’s bill will be able to pass the Senate with the support of the Greens and Senator Pocock.
Labor has argued the card is punitive and has failed those who were forced onto it.
Senator Marielle Smith said she travelled to Ceduna in South Australia and heard stories about how the cashless debit card was stigmatising individuals and leaving the most vulnerable worse off.
“It has made things worse for far too many Australians,” the Labor senator told the Senate.
She acknowledged the card had a positive impact for some, but forcing people onto it had a “punitive effect”.
Senator Smith also said some of the positive impacts “wasn’t the card per se, but the wraparound support services”.
The coalition has argued that drug use, violence and anti-social behaviour will spike if the card is scrapped.
Indigenous coalition senator Jacinta Price said the government was “ignoring the suffering of vulnerable children”.
“Instead, favouring the rights of abusers, perpetrators and adults controlled by addiction,” she told the Senate.
The Northern Territory senator said those wanting to abolish the card couldn’t comprehend what it was like to “constantly have your income demanded from you by addicted relatives”.
Senator Price said denying these demands would breach cultural protocols and could lead to violence.
“This is fact. I live this culture,” she said.
Senator Price also questioned why the government would retain the cashless debit card on a voluntary basis if the card wasn’t working.
Nationals senator Perin Davey accused the government of “pandering to progressives in the cities ... who think they are doing the right thing by our vulnerable communities, but they really aren’t”.
Labor has flagged a range of amendments, including providing access to more businesses and enabling online shopping.
Almost $50 million (US$32 million) has also been put aside for extra alcohol and drug services, as well as more money for employment programs.
Welfare recipients will be able to move off the card by October 4 if the legislation passes this week.
